Initial jobless claims for the week ended Feb. 1 fell to 331,000, which was lower than estimates of 335,000. The December U.S. international trade deficit, meanwhile, widened to $38.7 billion vs. estimates of $36 billion.

Though still on pace to close lower for the week, the S&P 500 and Dow closing up more than 1% helped to curb the more than 2% losses in each index on Monday.

"There's a battle going on here," Uri Landesman, president of Platinum Partners, said in a phone interview from New York. "The bulls don't want to give up too quickly ... the bears are looking at a five-year rally and a very high level of bullishness."

Friday's January nonfarm payrolls report is expected to show an increase to 180,000 jobs added after December's scant 74,000.

"When you look at this recovering economy, the ugly stepsister has been jobs," Thom Fross, co-founder of Fross & Fross Wealth Management, said in an interview. "But if these numbers continue to come in where they are, the ugly stepsister could end up being Cinderella."

The European Central Bank on Thursday kept its benchmark interest rate at a historical low of 0.25%.

The Bank of England kept interest rates at a record low of 0.5%.

AkamaiTechnologies (AKAM) was the biggest gainer on the S&P 500 after the content-delivery company reported a better-than-expected fourth-quarter profit. Shares surged 20.6% to $57.18. Chesapeake Energy (CHK) was the worst performer in the index, dropping 6.9% to $24.41.